Broadcom Inc. (AVGO) is a Great Momentum Stock: Should You Buy?

14.06.24 18:00 Uhr

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.Below, we take a look at Broadcom Inc. (AVGO), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Broadcom Inc. Currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.You can see the current list of Zacks #1 Rank Stocks here >>>Set to Beat the Market?In order to see if AVGO is a promising momentum pick, let's examine some Momentum Style elements to see if this chipmaker holds up.Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.For AVGO, shares are up 5.88% over the past week while the Zacks Electronics - Semiconductors industry is down 0.64% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 18.9% compares favorably with the industry's 0.47% performance as well.Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Broadcom Inc. Have increased 24.55% over the past quarter, and have gained 90.05% in the last year. On the other hand, the S&P 500 has only moved 5.47% and 25.97%, respectively.Investors should also pay attention to AVGO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. AVGO is currently averaging 3,030,172 shares for the last 20 days.Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AVGO.Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AVGO's consensus estimate, increasing from $46.88 to $47.16 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.Bottom LineTaking into account all of these elements, it should come as no surprise that AVGO is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Broadcom Inc. On your short list.Free – 5 Dividend Stocks to Fund Your Retirement Zacks Investment Research has released a Special Report to help you prepare for retirement with 5 diverse stocks that pay whopping dividends. They cut across property management, upscale outlets, financial institutions, and a couple of strong energy producers.5 Dividend Stocks to Include in Your Retirement Strategy is packed with unconventional wisdom and insights you won’t get from your neighborhood financial planner.Download Now – Today It’s FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks

Quelle: Zacks

Nachrichten zu Broadcom Corp.

Analysen zu Broadcom Corp.

DatumRatingAnalyst
03.12.2015Broadcom HoldCanaccord Adams
20.08.2015Broadcom HoldArgus Research Company
03.08.2015Broadcom HoldCanaccord Adams
31.07.2015Broadcom Market PerformCowen and Company, LLC
31.07.2015Broadcom HoldTopeka Capital Markets
DatumRatingAnalyst
29.05.2015Broadcom BuyBrean Capital
28.05.2015Broadcom BuyArgus Research Company
22.04.2015Broadcom OutperformRBC Capital Markets
22.04.2015Broadcom BuyTopeka Capital Markets
22.04.2015Broadcom BuyBrean Capital
DatumRatingAnalyst
03.12.2015Broadcom HoldCanaccord Adams
20.08.2015Broadcom HoldArgus Research Company
03.08.2015Broadcom HoldCanaccord Adams
31.07.2015Broadcom Market PerformCowen and Company, LLC
31.07.2015Broadcom HoldTopeka Capital Markets
DatumRatingAnalyst
22.07.2013Broadcom verkaufenExane-BNP Paribas SA
11.04.2013Broadcom verkaufenBarclays Capital
26.03.2013Broadcom verkaufenExane-BNP Paribas SA
12.11.2012Broadcom underperformExane-BNP Paribas SA
18.10.2012Broadcom underperformExane-BNP Paribas SA

Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für Broadcom Corp. nach folgenden Kriterien zu filtern.

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Hold: Halten-Empfehlungen wie z.B. "halten" oder "neutral"
Sell: Verkaufsempfehlungn wie z.B. "verkaufen" oder "reduce"